Republic Partners with Midwest Equity Sponsor to provide a $3.65 million Facility to Communications and Utility Contractor

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Republic Business Credit works with a private equity group and turnaround consulting firm to refinance Contractor’s lender and provide restorative runway

"It was great to see our leadership team dive headfirst with the equity sponsor and consultant to underwrite a creative solution.” Stewart Chesters, CEO

When a portfolio company of a Midwest-based private equity group began underperforming, they chose a partner that combined both the industry expertise and wherewithal to provide a complex working capital solution by connecting with Republic Business Credit. Republic always puts its people and relationships at the core of its mission, and those bonds forged the path forward to understanding the story and structuring a facility towards the future.

Republic was chosen by the sponsor and consultant due to its flexibility, creativity, experience and its reputation for approving its original term sheets. The private equity firm acquired the company several years before, but brought in the turnaround consulting firm once it realized the management team needed immediate support and long-term improvement. The turnaround consultant knew of Republic’s commitment to the corporate renewal of companies with its President, Robert Meyers, recently completing his year as President of the Midwest Chapter of the Turnaround Management Association.

The company provides several services to wireless carriers throughout the US as the demand for 5G radiates throughout the technology world. The company provides the contracting, electrical and tower upgrading expertise that is essential for the US to keep up with the rest of the world in the application of 5G. According to several sources, the Global 5G infrastructure market has grown from merely a $0.5 billion in 2016, to be on pace to exceed $23 billion by 2025 with some reports double or triple that number. Republic is proud to support companies that experience recoverable distress and need the right partner to support their future growth plans.

Republic provided a $3,650,000 ledgered line of credit with extended customer eligibility up to 120 days, a $750k Unbilled Receivables facility, along with a $350,000 equipment term loan secured by their equipment and real estate. Republic relied on the sponsors' commitment, the consultants 13-week cashflow and its knowledge of the industry to structure the right facility for the communications provider. Robert Meyers, President of Republic, said, “It was great to see our leadership team dive headfirst with the equity sponsor and consultant to underwrite a creative solution.” Stewart Chesters, Republic’s CEO, added, “It is one of those deals you will remember for a long time, the cashflows were struggling during the underwriting phase, but our commitment to a client-first approach allowed us to work through it together with the sponsor.” Republic often works with growth-related companies, however, this growth story needed an extra dose of time and patience. Since the initial funding, the company has consistently outperformed its forecast as Republic’s partners promised it would.

Republic Business Credit partners with banks, accountants, sponsors, lawyers and investment banks to collaboratively support entrepreneurs across the United States, to create value, by enabling them to focus on growing successful businesses.

ABOUT REPUBLIC BUSINESS CREDIT
Republic Business Credit provides fast and flexible working capital solutions to help rapidly growing businesses, start-ups, and companies in turnaround or recoverable distressed situations. Winner of the Emerging Growth Company of the Year award from the Louisiana Chapter of the ACG, and the FactoringClub’s Best Factoring Company Award for 2018, the Republic Business Credit team has the expertise necessary to meet the nuanced financial needs of companies across a wide variety of industries. It provides asset-based loans, ledgered lines of credit, non-recourse factoring, factoring and direct to consumer loans including e-commerce working capital. Since its founding in 2011, Republic Business Credit has provided over $10 billion in working capital.

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Joanne Chesters
@republicbc
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